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TUMAINI UNIVERSITY DAR ES SALAAM COLLEGE
FACULTY OF BUSINESS ADMINISTRATION

BACHELOR OF BUSINESS ADMINISTRATION

MGMT 321

BUSINESS PLAN
TABLE OF CONTENTS

EXECUTIVE SUMMARY………………………………………………………...…Error! Bookmark not defined.

1.0. GENERAL BUSINESS DESCRIPTION……………………………………..…3 1.1 Name of the business……………………………………………………..……3 1.2. OWNERS/PARTNERS………………………………………………………...3 1.3. BUSINESS TYPE………………………………………………………………3 Activities of the business………………………………………………………….3 Targeted customers………………………………………………………………..3 The gap in the market………………………………………………………..……4

1.4. INDUSTRIAL ANALYSIS…………………………………………………...5 1.5. VISION, MISSION AND OBJECTIVES…………………..…………………5 Vision………………………………………………………………………….…5 Mission……………………………………………………………………….…..5 Objectives ……………………………………………………………….……….5
2.0. THE MARKETING PLAN………………………………………………………6 2.1 THE TARGET MARKET………………………………………………………6 Market location & Customers……………………………………………………….6 Market Trends & the future………………………………………………………….7 2.2. COMPETITION………………………………………………………………..7 Profile of customers…………………………………………………………………7 The stratergy in competing……………………..……………………………………8

2.3MARKETING PLAN AND SALES STRAGEGY………………………………..9
Market penetration..................................................................................................…...9
Marketing strategy.…………………………………………………………………….9
3.0 OPERATIONAL PLAN…………………………………………………………10 Facilities and offices……………………………………………………………….10 Controls over the shuttles………………………………………………………….10

4.0. MANAGEMENT AND ORGANIZATION PLAN……………………………11 Management………………………………………………………………………11 organizational structure……………………………………………………………12
5.0. LONG-TERM DEVELOPMENT AND EXIT PLAN………………………….14
Goals………………………………………………………………………………….14
Strategies……………………………………………………………………………..14
Milestones…………………………………………………………………………....14
Risk evaluation……………………………………………………………………….14
Exit plan…………………………………………………………………………...…14
6.0. FINANCIAL PLAN…………………………………………………………….15 6.1. Introduction……………………………………………………………………… 6.2. Projected Balance sheet………………………………………………………… 6.3. Projected Income statements…………………………………………………….. 6.4. Projected cash flows……………………………………………………………..

1.0 EXECUTIVE SUMMARY

Comfort Shuttle Services (CSS) is a start-up business, providing workers with transportation services to and from their working places. The market trends are growing day by day, new transport services are coming but do not meet the market demand. Our service is a unique one, that both the workers and managements will prefer it. In one way or another management might use this as a way of giving bonuses to their workers as a motivation tool. The already existing businesses are making good profits. Major growth trend are due to increase in industries and big firms that employ many people in town areas, this has created a need to provide a reliable and comfortable transportation services. Most new businesses can simply not afford the substantial investment in transportation facilities that can be accessed on as needed basis through companies such as CSS.
CSS will be having buses that will be taking workers around Ilala, Temeke and Kinondoni districts in Dar es Salaam. The transportation will be comfortable, accessible and affordable, and it will bring the workers in time to their working places.
The business will be a partnership of five people and it will be managed by the partners themselves .As the coming entrepreneurs, we bring the new and comfortable transportation services that are going to be admired by the majority of workers. We are all heading to graduate in Bachelor of business administration, with a big morally of being good entrepreneurs, we anticipate that CSS will be the best idea that can help the workers who have been suffering with the Daladala transport, which is uncomfortable, and causing getting late to work.
Our revenues/sales projection is to have the yearly average of 850,000,000 Tshs per year, and is expected to continuously increase annually. Analysis done by partners has revealed that the proposed business is reasonably practicable and profitable.

2.0. THE GENERAL BUSINESS DESCRIPTION

2.1. Name

The proposed business will be called COMFORT SHUTTLE SERVICES (CSS)

2.2. Ownership

The proposed business will be a partnership. The partners in this business are: ▪ Maria-epifania Simon,

▪ Abdallah Jumanne,

▪ Innocent Mrema,

▪ Elia Patrick , and

▪ Boniface Michael

All of the partners are currently pursing their undergraduate degree in Tumaini University Dar es Salaam College. The particular program is Bachelor of Business Administration. (BBA)- Accounting concentration.

2.3. BUSINESS TYPE

▪ Activities of the business

The main activity of the business proposed will be sending employees of private and public institutions to and from their work place using comfortable buses. Besides this, the business may also rent out buses to those in need for different purposes; such as transportation facilities in weddings, touristic trips, and funerals

▪ Targeted customers
The proposed business will mainly target the managements of various institutions e.g. banks, hotels, insurance agencies, supermarkets, government ministries, consultancy firms etc. in Dar es Salaam. These managements will be approached, and given the offer of getting their employees served with transportation facilities to and from work. The managements can agree with the employees whether to pay for this service through part of the employees’ salaries, by contribution between the institution and employees, or by the institution itself as a means of motivation and increase of efficiency through elimination of late coming to work places.

▪ The gap in the market
Transportation in Dar es Salaam has been a very serious problem for passengers. Most of Dar es Salaam residents depend on mini buses popularly known as daladalas for their movements around the city.
The problem arises from the fact that Dar es Salaam is densely populated, and most of the important activities are concentrated at few places like Posta and Kariakoo, subsequently passengers heading towards these places are too many for the available daladalas.
These lead passengers to be late to get a daladala to the work place and from the work place. Being late to offices make them unable to accomplish all their tasks; eventually lowering down productivity of their institutions. When they finish their daily assignments, the problem is also there as they go back to their homes. They reach at their homes very late; leading to family problems e.g. lack of due care to children (which affect the way these children grow, and even their academic performance). It also makes them wake up very tired the next morning, affecting their attempting of tasks.
Furthermore, during scrambling for daladalas; people lose their properties (vibaka i.e. pickpockets are always there to seize the opportunity when crowds are struggling into a daladala). They also get hurt and dirtied when people step on them.
As if that is not enough, many of the daladalas cut routes; especially during rush hours, delaying the passengers on the road. It also forces the passengers to use more daladalas hence increasing transportation costs.
It’s just that problems are too many to get all of them discussed. We could talk of how dirt the conductors are, the issue of filling in fuel with passengers in daladalas, daladalas breaking down on the way due to lack of frequent maintenances, uncomfortable seats (others being torn) and bad language of conductors.
CSS is expected to bridge this gap by coming up with comfortable buses which will take the employees to and from their work places, taking from them the chaos of scrambling for buses, which costs them loosing of properties e.g. mobile phones and money; routes being cut and being late to work places and homes. Our buses will be frequently maintained and repaired to avoid breakdowns. We will also hire competent drivers who will care for the lives of the passengers unlike the daladalas drivers who are just in for the money to be submitted to their bus owners and their daily gain. There will be common points to pick these employees in the mornings and drop them in the evening according to the distribution of locations of these employees.

2.4. INDUSTRIAL ANALYSIS

The proposed business will operate in the city passengers transportation industry, mainly focusing on employees of different entities and institutions. This industry is almost in embryonic stage, as in, very few bus owners, without famous names are engaged in taking employees to and from their employments. Hospitals e.g. Agha Khan, hotels e.g. White Sands and corporations e.g. Swiss Port have already negotiated with some owners of buses to take their employees from different points to their work places. However about 99% of employees (who do not have private cars) from other places are left to scramble for daladalas.

2.5. Vision, mission, and objectives

Vision
Our vision is to be the solution for transportation problems to employees of private and public institutions through comfortable buses to and from work places without struggling or being late.

Mission
CSS will provide high quality transportation means to employees to and from working places, making them to enjoy going to work, and to reach there on time. It intends raise the performance of employees, and, subsequently raising the productivity level and quality of services offered by entities which are employers to these employees.

Objectives
The principal objective of CSS is to build a very big business in Dar es Salaam (later on in other regions of Tanzania also); making money for the partners to be used for their day to day life, as well as supporting the community of underprivileged such as orphans(as well street children at large) and HIV/AIDS victims.

3.0. THE MARKETING PLAN

3.1 THE TARGET MARKET

The market for Comfort Shuttle Services covers a large area of diverse and densely populated groups of workers and scattered groups of workers. The offices will be located around Mwenge Area. The target market will be the workers who are employed in Government institutions and private institutions. The Workers in these institutions have suffered a lot for a long time, getting late at work, being unsafe, unsecured and very uncomfortable with the public transport they have been using. We have targeted this group to help them out with this problem. It is the service that will quench the need of the group we are targeting.

3.2. Market Location & Customers

The market location will be in Dar es Salaam, mostly in industrial areas and the city centre to the workers residing places. These are places with many workers who are residing in different places for instance in Ilala, Temeke and Kinondoni Districts.
Our market segment will be the workers who are scattered in these three districts. Due to the high cost of living in near city centre most of the workers have moved to a distant places from town to where the cost of living is not that high and places with space. But most of these people are working in the city centre and in the industrial areas, in which it’s a distant place from their homes. In arriving at their working places they use Daladala. So we are targeting in providing alternative transport to these workers.
The workers transportation idea will attract 3 different customer profiles; • The workers in Government institutions • The workers in private institutions - like Industries, NGO’s, big Firms and other companies who are having a large number of workers. • Curious and open-minded -- "if you try it, you will like it." Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that the CSS is an express, good, fun, convenient, and inexpensive transportation service.

3.3. Market Trends & the Future

The population and demographic of Dar es salaam is increasing day by day, people are migrating from other regions to Dar es Salaam to look for job opportunities. The population is predicted to keep growing, and the Daladala business is not growing that fast to meet the demand, that is why our business will keep growing because most of the workers will shift from using Daladala and opt using the CSS.
The authorities will be interested with our business since our major aim is to get the workers early to their working places, to make them comfortable on the way to their working places and back, and also this will reduce the congestion in Daladala. Its market will be growing day by day as the employers and employees get to understand the feasibility of CSS, and realize the other way of giving bonuses to their workers and if they will see the benefit of having their workers on time without Daladala excuses.

3.4. THE COMPETITION

Currently the competitions will be the existing transport the workers are using, few companies which are offering the same kind of business and the Coming Fast moving Buses program by the Government. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential market. The newest competitors have made their successful entry based on an innovative concept or novelty. CSS will offer an innovative service in a comfortable style at a competitive price. Our aggressive plans of bringing workers on time and comfortable will also give us an advantage to create a good market share before the competition can adjust or similar concepts appear.

3.5. Profile of Competitors

The profiles of the competitors in this business that will be competing with CSS for the target market are these categories of public transportation providers. Including the UDA, Daladala registered with SUMATRA, private transport providers, and Taxes. All these are operating well but still the situation is insufficient and not very comfortable.
There are many daladalas in town which are serving the whole public, they are available in all the day time but always are over crowded, unsafe and uncomfortable. Actually they are serving the purpose, but there is a great need of having alternative and a new idea like the CSS’s one. UDA is only working with few companies that are using that kind of service.

3.6. The strategy in Competing

In competing there are some major ways in which we will create an advantage over our competitors and win a big market share;

• The service identity, quality, novelty and time keeping • Comfort ability, safety and commitment • Working with workers unions in companies and the managements • To be innovative and identifying good centres.
CSS is going to be the only transportation company among all the competitors which focuses the comfort ability and effectively keeping time. Each of the competitors do not offer these kind of services and are not very considerate to there customers. The target market will perceive CSS as the destination and savior for comfortable, express and luxury services.
Once they have tried the CSS services, their experience will be reinforced by friendly, efficient, knowledgeable service and comfortability. Customers retaining will be facilitated by accessible transportation and comfortably service rendered

3.7. MARKETING PLAN AND SALES STRATEGY.

Market Penetration

Entry into the market should not be a problem. We are going to convince the managements of Government and non government organizations around Dar es Salaam about providing the transport for their workers who always gets the problem of transport during morning and evening. Today good management tend to provide services such as transport without discriminatory basis so as to use the loophole of tax to avoid paying tax, as you increase the salary of the workers also the tax payment increases (Pay As You Earn) that is why some of the management provides services without discriminatory which is allowed in terms of tax and can enable the workers to benefit wit that service. Through this situation we will be able to enter into the market easily.

Marketing Strategy

We will start with 35 shuttles which will be able to carry about 1000 peoples per day. The revenue per shuttle will be Tshs 30,000 per day and the total cost per day will be Tshs 12,500 per shuttle. The profit per shuttle will be Tshs 17,500.The total profit for all 35 shuttles will be Tshs 612,500.

Leadership and Competitive Advantages. Our main Competitors in this business are Daladalas and Taxi. We are going to win the market over this competitors by providing the following services;

All passengers will be seated

No scrambling when the people entering into the shuttle that will reduce risk of theft or injuries.

Workers will be early during morning in their working places and in their home during evening.

Clean environment in the shuttle

Regular maintenance and repairs to avoid several breakdown of the shuttle on the road.

4.0 OPERATIONS

Facilities and office

We are going to have office which will deals with all the operations in the business. Our office will be located at Mwenge which is the centre of Dar es Salaam. Facilities that are going to be used in CSS Company together with their costs are as follows;

|Items |Costs (Tshs) |
|office furniture: | |
| tables (4@300,000) |1,200,000 |
| chairs (8@100,000+6@200,000) |2,000,000 |
| sofa (1@500,000) |500,000 |
| bookshelves (4@250,000) |1,000,000 |
|Office Computers, Printers& Scanners |6,700,000 |
|Totals |11,400,000 |

Controls over the Shuttles

All shuttles will be parked at different places according to their route and security will be provided for the sake of theft and other damages that might happen. Some of the shuttles will parked outside the office at where they start a trip during the morning and some of them will be parked in the office place. The shuttles will start working early in the morning for the workers to be early in their working places and they will be taken during evening back to their home.

Maintenance/Services of shuttles.

Maintenance of shuttles will be held after every week so as to provide services that will be comfortable to our customers as our strategy over competitors.

Manpower requirement

CSS Company requires 5 employers in Managerial position; 4 Office attendants; 70 Drivers and Conductors; and 3 Guards which gives 116,820,000/=, 260,000/=, 7,000,000/= and 225,000/= costs per month respectively.
Working Hours
CSS business will operate from Monday to Friday at 06:00am-19:30pm

4.1. MANAGEMENT AND ORGANIZATION PLAN

The businesses will depend on five people (team leaders) who will be taking decisions, initiating actions, and seeing that the tasks are correctly completed, and interact with other organizations and support services, such as garages for buses repairs. Apart from the five partners who have equal shares, our organisation is expected to have a number of employees who are the drivers, administrative assistants, helpers and guards. The responsibilities are being divided accordingly depending on the position one is being placed. All the team leaders are currently pursuing their under graduate studies and the drivers will at least be having the ordinary level of secondary education together with the class C driving licence.
Payments will be distributed depending to the tasks and responsibilities each one is being assigned to. Starting with the Coordinator who is the head, he will be given Tsh.200, 000, Financial controller will be paid Tsh.175, 000. Maintenances and servicing manager, marketing manager and the accountant will all be offered the same rate which is Tsh.150, 000. The drivers will be given a flat rate of Tsh.95, 000 while the administrative assistance will be given 100,000. All the guards will get payments of Tsh.75, 000 and the helper the amount of Tsh.50, 000 each.

Organizational structure
Below is the Organization structure together with the job description and responsibilities of each one within the organization.

[pic]
Coordinator :( Mr. Innocent F. Mrema)
Responsibilities:
1. Coordinating and directing all activities of the firm 2. Controlling the activities to make sure they adhere to the policies, regulations,

Financial controller:( Mr. Boniface Michael Mrosso)
Responsibilities
1. Reports to the coordinator of the firm about all the financing and investing activities of the firm.
2. Supervises the Maintenance and services, Marketing activities and the accounting activities.

Maintenance and Services: (Mr. Jumanne Abdallah)
Responsibilities
1. Reporting to the financial controller about all matters related to the maintenance of assets related to the business. 2. Supervising and coordinating periodic maintenance and servicing of the shuttles. 3. Monitoring entry and exit of the shuttles. 4. He deals directly with drivers.

Marketing manager:( Mr.Elia Patrick)
Responsibilities
1. Reporting to the financial controller about all matters related to new contracts deals and marketing activities. 2. He is the public relation officer of the company (PRO) 3. He deals with all matters related to marketing of the firm; finding and signing of new contracts on behalf of the firm

Accountant: (Miss. Maria-Epifania Simon)
Responsibilities
1. Reporting to the financial controller about all matters relating to payments and accountings. 2. Keeps records and all the books of accounts of the company 3. Paying and receiving cash/ deals with all the cash transactions. 4. Dealing with issues to do with credit facilities.

Drivers
Responsibilities
1. Reporting to the maintenance and servicing manager about all matters related to the maintenance and servicing of the shuttles

2. Driving the comfort shuttles and bringing the workers to their respective places of works. 3. Parking the buses after work.

5.0. LONG-TERM DEVELOPMENT

Goals
Comfort Shuttle Services is an innovative business that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, comfort, consistency and security that will make us the leader of the existing transport services
Strategies
our marketing efforts will be concentrated on providing comfort quality transport to the workers, as the market changes, new bus routes will be initiated buses may be added to maintain transportation.
Milestones
After the business starts, we will keep a close eye on controlling the quality of the business. If we are on target at the end of year 1, we will look to expand the business by increasing more buses.
Risk Evaluation
With any new venture, there is risk involved. The success of our business hinges on the strength and acceptance of a fairly new market. After year 1, we expect some copycat competition in the form of other independent units. Chain competition will be much later.

6.0 FINANCIAL PLANNING

|COMFORT SHUTTLE SERVICES LIMITED |
| THE INCOME STATEMENT FOR THE YEAR ENDING 31 DEC, |
| | 2,008 | 2,009| 2,010| 2,011 | 2,012 |
| Revenues | 847,350,000 | 932,085,000 | 1,025,293,500 | 1,076,558,175 | 1,098,089,339 |
| Cost of generating Revenues | 303,688,000 | 334,056,800 | 367,462,480 | 385,835,604 | 393,552,316 |
| Gross Profit | 543,662,000 | 598,028,200 | 657,831,020 | 690,722,571 | 704,537,022 |
| Less:Operating Expenses | | | | | |
| Maintainance | 35,280,000 | 38,808,000 | 42,688,800 | 44,823,240 | 45,719,705 |
| Salaries | 116,820,000 | 128,502,000 | 141,352,200 | 148,419,810 | 151,388,206 |
| Office Rent | 14,400,000 | 15,840,000 | 17,424,000 | 18,295,200 | 18,661,104 |
| Office Supplies | 2,000,000 | 2,100,000 | 2,310,000 | 2,425,500 | 2,474,010 |
| Utilities | 3,000,000 | 3,150,000 | 3,465,000 | 3,638,250 | 3,711,015 |
| Miscelleneous expenses | 7,397,500 | 8,137,250 | 8,544,113 | 8,971,318 | 9,150,744 |
| Depreciation | 91,526,000 | 100,678,600 | 110,746,460 | 116,283,783 | 118,609,459 |
| Insurance (6%) | 54,300,000 | 53,214,000 | 52,671,000 | 52,128,000 | 52,128,000 |
| Total Expenses | 324,723,500 | 350,429,850 | 379,201,573 | 394,985,101 | 401,842,243 |
| EBIT | 218,938,500 | 247,598,350 | 278,629,448 | 295,737,470 | 302,694,779 |
| Less: Interest (15%) | 95,025,000 | 76,020,000 | 57,015,000 | 38,010,000 | 19,005,000 |
| EBT | 123,913,500 | 171,578,350 | 221,614,448 | 257,727,470 | 283,689,779 |
| Less: Tax (30%) | 37,174,050 | 51,473,505 | 66,484,334 | 77,318,241 | 85,106,934 |
| Net Profit | 86,739,450 | 120,104,845 | 155,130,113 | 180,409,229 | 198,582,845 |

|COMFORT SHUTTLE SERVICES LIMITED |
| THE BALANCE SHEET AS AT DECEMBER 31, |
| | 2,008 | 2,009 | 2,010 | 2,011 | 2,012 |
| ASSETS | | | | | |
| Current Assets | | | | | |
| Cash | 102,921,450 | 113,213,595 | 124,534,955 | 130,761,702 | 133,376,936 |
| Account receivables | 20,000,000 | 22,000,000 | 24,200,000 | 25,410,000 | 25,918,200 |
| Other current assets | 3,000,000 | 3,300,000 | 3,630,000 | 3,811,500 | 3,887,730 |
| Total | 125,921,450 | 138,513,595 | 152,364,955 | 159,983,202 | 163,182,866 |
| Fixed Assets | | | | | |
| Motor vehicles | 905,000,000 | 995,500,000 | 1,095,050,000 | 1,149,802,500 | 1,172,798,550 |
| Office Furnitures | 4,230,000 | 4,653,000 | 5,118,300 | 5,374,215 | 5,481,699 |
| Other fixed assets | 6,030,000 | 6,633,000 | 7,296,300 | 7,661,115 | 7,814,337 |
| Less: Depreciation | (91,526,000) | (100,678,600) | (110,746,460) | (116,283,783) | (118,609,459) |
| Net Fixed Asset | 823,734,000 | 906,107,400 | 996,718,140 | 1,046,554,047 | 1,067,485,128 |
| TOTAL ASSETS | 949,655,450 | 1,044,620,995 | 1,149,083,095 | 1,206,537,249 | 1,230,667,994 |
| LIABILITIES | | | | | |
| Current: | | | | | |
| Account payable | 14,616,000 | 16,077,600 | 17,685,360 | 18,569,628 | 18,941,021 |
| Short-term debt | 50,000,000 | 55,000,000 | 60,500,000 | 63,525,000 | 64,795,500 |
| Other current liabilities | 20,000,000 | 22,000,000 | 24,200,000 | 25,410,000 | 25,918,200 |
| Total Current Liabilities | 84,616,000 | 93,077,600 | 102,385,360 | 107,504,628 | 109,654,721 |
| Long term: | | | | | |
| Loan | 506,800,000 | 380,100,000 | 253,400,000 | 126,700,000 | - |
| Fund contributed by partners | 271,500,000 | 271,500,000 | 271,500,000 | 271,500,000 | 271,500,000 |
| Euity & Debt | 778,300,000 | 651,600,000 | 524,900,000 | 398,200,000 | 271,500,000 |
| Retained earnings | 86,739,450 | 206,844,295 | 361,974,408 | 542,383,637 | 740,966,483 |
| Additional Fund Needed | | 93,099,100 | 159,823,326 | 158,448,984 | 108,546,791 |
| TOTAL LIABILITIES AND EQUITY | 949,655,450 | 1,044,620,995 | 1,149,083,095 | 1,206,537,249 | 1,230,667,994 |

|CASH FLOW STATEMENT FOR THE PERIOD ENDING DECEMBER 31, |
| |2008 |2009 |2010 |2011 |2012 |
|Operation activities | | | | | |
|Net Profit | 86,739,450 | 120,104,845 | 155,130,113 | 180,409,229 | 198,582,845 |
|Add: | | | | | |
|Depreciation | 91,526,000 |100678600 |42837713 |51821106 |227906458 |
|Change in debtors | (20,000,000) | (2,000,000) | (2,200,000) | (1,210,000) | (508,200) |
|Change in short term debt | 84,616,000 | 10,034,700 | 9,307,760 | 5,119,268 | 2,150,093 |
|Change in Other Current Assets | (3,000,000) | (300,000) | (330,000) | (181,500) | (76,230) |
| | | | | | |
|Cash and Cash equivalents from | 239,881,450 | 228,518,145 | 204,745,586 | 235,958,103 | 428,054,966 |
|operating activities | | | | | |
| | | | | | |
|Investment activities | | | | | |
| Motor vehicles | 905,000,000 | 90,500,000 | 65,595,626 | 102,410,625 | 116,899,291 |
| Office Furniture | 4,230,000 | 423,000 | 465,300 | 255,915 | 107,484 |
| Other fixed assets | 6,030,000 | 603,000 | 663,300 | 364,815 | 153,222 |
| | | | | | |
| Cash and Cash equivalents towards | (915,260,000) | (91,526,000) | (66,724,226) | (103,031,355) | (117,159,998) |
|investing activities | | | | | |
| | | | | | |
| Financing Activities | | | | | |
|Loan raising | 633,500,000 | | | | |
| Contributions from Partners | 271,500,000 | | | | |
| Loan payment | (126,700,000) | (126,700,000) | (126,700,000) | (126,700,000) | (126,700,000) |
| | | | | | |
| Cash and Cash equivalents from | 778,300,000 | (126,700,000) | (126,700,000) | (126,700,000) | (126,700,000) |
|financing activities | | | | | |
| | | | | | |
| Net increase/decrease in cash and | 102,921,450 | 10,292,145 | 11,321,360 | 6,226,748 | 184,194,968 |
|cash equivalents | | | | | |
| | | | | | |
|Opening balance of Cash and Cash |0 | 102,921,450 | 113,213,595 | 124,534,955 | 130,761,702 |
|equivalents | | | | | |
| | | | | | |
|Ending balance of Cash and Cash | 102,921,450 | 113,213,595 | 124,534,955 | 130,761,702 | 133,376,936 |
|equivalents | | | | | |

Finance
Income Statement
The Comfort Shuttle Services business requires motor vehicles and other equipments to operate. The major initial cost will be the costs of acquiring 37 registered vehicles, 35 buses and 2 office cars, for which we will invest partners’ fund of Tshs 271,500,000 and take a loan of Tshs. 633,500,000 Other initial start up yearly costs include; office rent, Tshs12,000,000, salaries, Tshs90,000,000, maintenance and services, 40,000,000.
Tshs2 million is to cover Office supplies, utilities which include electricity, water and telephone bills, Tshs3,000,000, miscellaneous expenses encompassing, parking fee, tshs500 per bus, assuming 20 of them will park in outsourced sites, that is, other than in the office premises for 269 days, 10,000,000 for other miscellaneous expenses.

Depreciation is computed on straight line method (cost of assets/life span), insurance is 6%. Interest on loan was taken to be 15% and tax rate, 30%. The business however will generate 847,350,000 in its first year, with an estimated gross profit of 16%. Basing on the fore mentioned assumptions, we forecasted that the business is to break-even in the very first year of its operations.

Cost of generating revenues, on the other hand was taken to be composed of the fuel consumed; price per litre was assumed to be tshs1450, fuel consumption per day was taken to be 28.98 litres per bus, cost computed per year covered only the 272 working days, and 3 more were added roughly to cover the idle days that buses we will be moving here and there for services.

Cash Flow Statement
As the owners of the Comfort Shuttle Business, we will invest tshs240 millions. The money will be used to cover start up costs and initial operating costs. Fixed costs are limited to our office space and equipment lease at $1,800 per month, which includes a 1000 square foot store on Main Street, a telephone system, and two photocopiers. As continued positive cash flows permit, the amounts I invested will be repaid.

Balance Sheet
Since it is a new business, we had our short run plan that fuel will be filled to fit the consumption on date; we had this in mind so as to minimize loopholes for theft by not keeping the inventories.

To ensure efficiency in the business operation and to reduce the chances for cash to fall short by huge amount of money, we decided to also take a short term debt of tshs18 millions that will absorb any financial burden from the business; and aid in other start up costs.

In supporting all of the above descriptions, the financial statements have been attached to support what has been entailed.
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Coordinator
Innocent F. Mrema

Maintenance and Servicing Manager
Jumanne Abdallah

Marketing ManagePatrick Mshana

Financial Controller
Boniface Michael Mrosso

Accountant
Maria-Epifania Simon

COMFORT SHUTTLE SERVICES ( CSS)

JANUARY, 2008

DONE BY:
BONIFACE MICHAEL
ELIA PATRICK
ABDALLA JUMANNE
INNOCENT F. MREMA
MARIA-EPIFANIA SIMON